EMC Laying Off 2,400 In Restructuring

EMC said the worker cutbacks would be made in its information infrastructure business, which includes the vendor's data storage systems, and would not include its VMware operations. The layoffs are part of a broader restructuring program that includes consolidating back-office functions, field and campus offices; reducing spending on contractors, third-party services and travel; and reducing "management layers," EMC said in a statement.

EMC also said the restructuring would "rebalance investments toward higher-growth products and markets," although it did not disclose details about those changes.

"Our goal is to position EMC for continued success throughout the downturn and for even greater success during the next economic growth cycle," CEO and President Joe Tucci said in a statement.

EMC disclosed the restructuring as part of its announcement of preliminary results for its fourth quarter ended Dec. 31. EMC said it expects to report revenue of approximately $4 billion, which represents 4 percent growth from the fourth quarter of 2007. EMC will report the detailed financial results for the quarter on Jan. 27.

The restructuring would cut annual expenses by approximately $350 million this year and $500 million in 2010, the company said. EMC will take a charge of approximately $248 million against fourth-quarter earnings to cover the restructuring costs.